3 weeks to another tax year end

Yes, it is getting close to the end of another tax year.

  • People planning what to push through their accounts this month
  • People having last minute surges to hit targets
  • And people planning ahead for the year coming

Whatever your position is, the end of the tax year provides a great opportunity to compare your results against what you planned (fingers crossed you planned on a result rather than hoped!).

What do you check?

  • Year on year, budget vs actual, your performance vs competitors
  • Revenue, costs, profit
  • Customer retention, new customers, life time customer value
  • Staff retention, staff performance, staff happiness
  • Assets value, balance sheet value, business value

Let us know in the comments what your favourite metrics to track are.

P.S. When it comes to preparing your tax return, here’s a few tips:

  1. Keep a record:
    • It doesn’t take long but often forgotten, keep a track record of income and expenditure throughout the year as you go and it will save you time come January. 
    • If you do not want to spend out on software such as xero or quickbooks (£10-£30 per month – and essential if reporting on VAT), then keep a simple spreadsheet tracking income and expenses for your self-employed business (and employment if you are employed)
    • Also keep track of charitable gift-aid donations, interest statements, pension contributions etc and keep any property income/expenditure separate
  2. Just do it:
    • For a simple tax return it doesn’t take long
    • You do not have to pay your tax liability as soon as you submit giving you plenty of time to plan to pay
    • Feel less pressure! Around half of tax returns are submitted in the last month, not knowing their tax liability until then – don’t let this be you
  3. Make it simpler, use:
    • A different bank account for only business transactions (paying yourself monthly)
    • The HMRC app to help estimate your tax liability
    • Evernote, a free app to keep notes and records of invoices and bills you collect (if you do not use bookkeeping software)

Contributor

Bill Smith – The Fresh Prince of Financial Flair is here to talk all about the money side of business

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